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Tuesday, January 11, 2011

Ind. Courts - "Appeals Court Hears Case Against Tax Help Company: Company Accused Of Misleading Customers"

Yesterday's oral argument before the Court of Appeals in the case of JK Harris & Company, LLC, vs. Ronald Sandlin appears to be worth watching. From the summary provided by the COA before the argument:

In this case, Appellee Ronald Sandlin entered into a contract for professional tax relief services with Appellant JK Harris Co. JK Harris's attempt to resolve Sandlin's issues with the IRS was not successful. Sandlin filed a complaint in Marion Superior Court against JK Harris on behalf of himself and all others similarly situated alleging statutory deception and unjust enrichment as class claims, and negligence and breach of fiduciary duty as individual claims. Sandlin also filed a motion for class certification. JK Harris did not respond to either the complaint or to Sandlin's motion for class certification. The trial court granted Sandlin's motion for class certification. Also, without holding a hearing on the matter, the trial court entered a default judgment against JK Harris. JK Harris appeals the decision of the trial court to certify a class action and entry of default judgment against it. JK Harris also argues that the trial court lacked subject matter jurisdiction because the contract between the parties has a binding arbitration clause. The Scheduled Panel Members are: Judges Baker, Najam and Mathias.
Indy 6News was there and had this story last evening. Some quotes from the story, which also has a link to a worth watching video featuring 6News consumer reporter Rafael Sanchez:
Attorneys for Ron Sandlin, of Indianapolis, and others argue that the company, through persuasive TV commercials, makes it appear as though it's something that is done routinely, when, in fact, it's very rare.

Five years ago, Sandlin said he paid JK Harris about $4,500 after he said his tax bill went from $29,000 to about $300,000.

"Here I am today; they took my money, told me no deal, no nothing," he said Monday. "(JK Harris hasn't) done anything for me except put me further and further in debt."

The attorney for JK Harris said the lower court overstepped its bounds, adding that the only resolution for Sandlin is to accept the company's arbitration process or start the case over.

"Let's hear evidence. Let's have witnesses raise their right hands, swear under oath, present exhibits, tell exactly what they've done or haven't done," said company attorney Gary Miller. "Let the courts and the justice system work through it."

Watching the few seconds of the 6News video showing the actual argument, I was struck by the big poster/chart one of the attorneys was using. This entire COA oral argument from 1/10/2011 is archived online; access it here.

Posted by Marcia Oddi on January 11, 2011 10:00 AM
Posted to Indiana Courts